The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Tuesday! Here's what you need to know today in crypto: |
- Bitcoin trades below $26,000 in subdued start to the week.
- Crypto derivatives platform Deribit saw trading volume increase 17% last month.
- TradFi exchanges' attitudes toward crypto are mixed.
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CoinDesk Market Index (CMI): 1,081 −0.3%
Bitcoin (BTC): $25,737 −0.6%
Ether (ETC): $1,631 −0.1%
S&P 500: 4,515.77 +0.2%
Gold: $1,957 +0.9%
Nikkei 225: $1,957 +0.9% |
Bitcoin continued its subdued start to the week, having traded below $26,000 for the past 24 hours. BTC held between $25,500 and $25,750 during the Asian trading session today. The enthusiasm following last week's ruling that the SEC must review its rejection of Grayscale Investments' application to turn its bitcoin trust into an ETF has subsided, with other applications still kept waiting by the U.S. regulator. The broader crypto market remains in a similarly sideways trend, with the CoinDesk Market Index (CMI) down 0.42% in 24 hours. |
Crypto derivatives platform Deribit saw trading volume increase 17% to $42 billion in August even as global activity declined by 12% to around $1.6 trillion. The driving force behind the increase was Deribit's options segment, with ETH options recording their highest volumes since March, Chief Commercial Officer Luuk Strijers told CoinDesk. Bitcoin experienced significant price swings between $25,000 and $30,000, triggering massive liquidations in futures and options on the platform and boosting hedging demand for options contracts. Deribit controls nearly 90% of global crypto options activity. A survey by trade association the World Federation of Exchanges (WFE) reflected a divided attitude toward offering crypto-related products and services. As part of a study of cryptocurrency trading infrastructure, the WFE surveyed its member exchanges, with 12 of the 29 respondents (41%) saying they are already offering crypto-related products or services. A further seven plan to offer them in the future, with 10 saying they have no such plans. The survey was conducted between May and July 2022, some months before FTX's collapse, which may have damped attitudes to crypto further since. |
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Market Insight: BTC's Monthly Stochastic Indicator Turns Lower |
A signal that has previously marked bitcoin market peaks indicated that BTC has been overbought and is therefore ripe for decline, according to Katie Stockton, founder and managing partner of Fairlead Strategies. The stochastic indicator recently turned down from above 80, indicating a loss of upward momentum. The indicator oscillates between 0 and 100 with readings above 80 implying overbought conditions. "At the end of August, bitcoin confirmed an overbought downturn in its monthly stochastics in a setback," Stockton said in a note to clients on Monday. "The downturn suggests the basing process may be drawn out." Previous overbought downturns in early 2021 and December 2017 marked major price tops. |
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- The chart shows daily changes in the number of MKR held in wallets tied to centralized exchanges since November 2022.
- On Monday, the so-called exchange balance fell by 14,140 MKR to 65,000 MKR, the lowest since June 21.
- Dwindling exchange balance is often taken to represent investor bias for long-term holding strategy.
- Source: Coinglass
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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